The Surprising Secrets of Exceptional Product Leaders | Jessica Hall | TEDxPearlStreet

Summary

In this insightful talk, the speaker emphasizes the critical role of understanding customer needs in the success of digital initiatives. With a staggering 70% of such projects failing, the focus should shift from just having great ideas or executing well to truly grasping who the customer is and what they require. Exceptional product leaders prioritize teaching their teams to think critically and listen to customers. By crafting compelling customer stories and fostering an environment where team contributions are valued, they drive innovation and market growth. Ultimately, the speaker encourages leaders to start telling their customer stories, enabling their teams to achieve extraordinary results together.

Takeaways

• 😀 70% of digital initiatives fail, leading to significant financial losses for companies.
• 🚀 Exceptional product leaders focus on understanding customer needs rather than just having great ideas.
• 💡 It's crucial to teach teams how to think, listen, and solve customer problems.
• 🔍 Knowing your customer in detail (beyond demographics) is essential for creating valuable products.
• 📈 Exceptional teams prioritize customer needs to drive business growth.
• 🛠️ Teams must be empowered to make decisions that consider the customer's challenges and experiences.
• 🤝 The relationship between product leaders and their teams is critical; top-down decision-making often fails.
• 👥 Exceptional product leaders consistently communicate their customer story to align their team.
• 🎯 A compelling customer vision is necessary for motivating and guiding a team through complex challenges.
• 🌟 Learning to embrace uncertainty and encourage team contributions is vital for exceptional leadership.

Q & A

What is the primary reason that many digital initiatives fail?

According to the script, 70% of digital initiatives fail due to a lack of understanding of customer needs and the failure to deliver products that customers actually want.

What do exceptional product leaders do differently from ordinary ones?

Exceptional product leaders teach their teams how to think critically, listen to customers, and solve their problems, rather than simply focusing on ideas or execution.

Why is knowing who the customer is important?

Understanding who the customer is allows teams to make informed decisions that address actual needs, rather than relying on superficial demographic data.

How can teams improve their understanding of customer needs?

Teams can improve by conducting thorough research, engaging with customers, and analyzing data to uncover patterns that reveal what customers truly need.

What are the characteristics of an effective customer story?

An effective customer story includes a clear picture of the customer, highlights market failures in serving that customer, and presents a vision of how the product will help the customer thrive.

What role does mindset play in team performance?

Mindset shapes how teams approach their work; exceptional product leaders foster a mindset focused on problem-solving for customers, which can lead to better performance and innovation.

What does the script suggest about the importance of storytelling in leadership?

Storytelling is crucial for leaders as it helps communicate the customer story effectively, ensuring that the entire team understands the goals and the customer’s needs.

How should a product leader approach decision-making with their team?

A product leader should encourage collaboration and input from their team, acknowledging that they don't have all the answers and that collective learning is essential for success.

What is the significance of creating a vision for the team?

Creating a compelling vision gives the team a clear direction and motivates them to contribute their ideas, fostering an environment of collaboration and innovation.

What is the first step suggested for leaders looking to improve their teams?

The first step is to start telling the customer story and to actively engage with the customer to gain insights into their needs and challenges.

Outlines

00:00

📈 Understanding Exceptional Product Leadership

In this section, the speaker emphasizes the alarming statistic that 70% of digital initiatives fail, resulting in significant financial losses. Many organizations struggle to identify what their customers truly need, leading to the creation of products that don't resonate with the market. The speaker distinguishes exceptional product leaders from their ordinary counterparts by highlighting their ability to understand customer needs deeply. Rather than focusing solely on great ideas or execution, exceptional leaders teach their teams to think critically, listen to customers, and solve real problems. They recognize that true customer understanding goes beyond basic demographics, urging teams to conduct thorough research and engage with customers directly. By doing so, product leaders can guide their teams toward making informed decisions that align with customer needs and market opportunities.

05:00

💡 Shifting Mindsets for Innovation

This part delves into the importance of changing team mindsets from a focus on process and execution to prioritizing customer needs. The speaker illustrates that ordinary teams often concentrate on meeting specifications and deadlines, which limits their potential for innovation. In contrast, exceptional teams, led by visionary product leaders, think critically about how to help customers succeed and grow. The speaker uses a case study of a manufacturer transitioning into the DIY market, demonstrating how teams can achieve success by spending time understanding their customers' experiences and challenges. The discussion underscores the significance of mindset in shaping daily decisions and overall team performance, highlighting the need for product leaders to cultivate a customer-centric approach within their teams.

10:03

🌟 The Power of Customer Stories

The speaker emphasizes the role of customer stories in fostering alignment and clarity within product teams. Exceptional product leaders effectively communicate these narratives to their teams, ensuring that every decision is informed by a deep understanding of the customer's journey. The speaker provides an example of the Common Application, which simplifies the college application process for students facing significant challenges. By articulating a compelling customer story, product leaders can inspire their teams to innovate and focus on creating solutions that genuinely address customer needs. The discussion highlights the critical elements of a strong customer story, including detailed descriptions of the customer, acknowledgment of market failures to serve their needs, and a vision of how the product will empower customers to achieve their goals.

🚀 Fostering Innovation Through Team Collaboration

In this final segment, the speaker outlines the qualities of exceptional product leaders who encourage collaboration and innovation within their teams. They emphasize the importance of admitting uncertainty and welcoming team contributions. Exceptional leaders recognize that they don't have all the answers and create an environment where team members feel safe to share ideas and learn from failures. This openness to collaboration fosters a culture of creativity and problem-solving, empowering teams to develop effective solutions. The speaker concludes by encouraging leaders to begin telling their customer stories, engaging with the market, and creating a compelling vision for their teams. This proactive approach may be challenging initially but is essential for building a high-performing team capable of delivering exceptional products.

Keywords

💡Customer Focus

Customer focus refers to a business strategy that prioritizes understanding and meeting the needs of customers. In the video, the speaker emphasizes that many teams claim to be customer-focused but often lack a deep understanding of who their customers truly are. For example, when discussing a 'soccer mom,' the speaker highlights the need for specific insights into her life circumstances to effectively address her challenges.

💡Exceptional Product Leaders

Exceptional product leaders are those who not only possess great ideas but also foster a culture of understanding customer needs within their teams. The speaker distinguishes these leaders by their ability to teach their teams how to think critically about customer problems. They share customer stories and create a clear vision that drives their teams' efforts, thus contributing to business growth.

💡Execution

Execution in the context of product development refers to the ability to implement plans and deliver products effectively. However, the speaker argues that merely executing tasks without understanding customer needs can lead to failures. They stress that execution alone is not what makes product leaders exceptional; instead, it's the alignment of execution with solving real customer problems that drives success.

💡Mindset

Mindset relates to the attitudes and beliefs that shape how individuals and teams approach challenges. The speaker asserts that changing a team's mindset can significantly improve performance. For instance, ordinary teams focus on following processes, while exceptional teams prioritize understanding customer needs and how to meet them, as illustrated through the example of a manufacturer entering the DIY market.

💡Market Understanding

Market understanding involves comprehending the dynamics of the industry and the specific challenges faced by target customers. The speaker emphasizes that exceptional product leaders are deeply aware of the market's failures to serve customers effectively. By recognizing these gaps, they can position their products to meet unaddressed needs, as seen in the example of the Common Application, which focuses on helping students navigate college admissions.

💡Customer Stories

Customer stories are narratives that articulate the experiences and challenges of target customers. The speaker highlights the importance of sharing these stories within teams to maintain a clear focus on customer needs. Exceptional product leaders consistently communicate these narratives to ensure all team members understand the customer journey and the importance of their contributions.

💡Prototyping

Prototyping is the process of creating preliminary versions of a product to test ideas and gather feedback. In the video, a team developing a digital design tool engaged in extensive prototyping and discussions with DIY builders to refine their understanding of customer requirements. This iterative process allowed them to create a product that effectively addressed the needs of their target audience.

💡Collaboration

Collaboration involves working together across different roles and departments to achieve common goals. The speaker underscores that exceptional product leaders foster an environment where teams are encouraged to share ideas and learn from customer interactions. By promoting collaboration, leaders can leverage diverse perspectives to innovate and solve customer problems more effectively.

💡Vision

Vision refers to a clear and compelling direction for the future of a product or organization. The speaker explains that exceptional product leaders articulate a vision that resonates with their teams, motivating them to tackle challenges. This vision not only outlines how the product will help customers but also frames the future success of the organization, inspiring teams to contribute their best efforts.

💡Adaptability

Adaptability is the capacity to adjust strategies and actions in response to changing circumstances or feedback. The video emphasizes that exceptional product leaders understand the need for their teams to be adaptable, particularly in a rapidly evolving market. By fostering an adaptable mindset, leaders can ensure their teams remain responsive to customer needs and market trends.

Highlights

Seventy percent of digital initiatives fail, leading to significant financial losses.

Exceptional product leaders focus on understanding customer needs, rather than just executing ideas.

Ordinary teams often lack clarity about who their customer is and what they need.

It’s crucial to go beyond demographics and understand the specific challenges faced by customers.

Exceptional teams prioritize solving customer problems, helping their business grow.

Research and data should drive understanding of customer needs and market opportunities.

Top-down decision-making often distances leaders from the realities faced by customers.

Exceptional product leaders craft and share their customer story with their teams and stakeholders.

Successful teams create a detailed picture of the customer and their journey.

Understanding how the market has failed to serve customers opens opportunities for innovation.

An exceptional product leader inspires their team with a vision of how the product can empower customers.

Exceptional leaders embrace uncertainty and foster a safe environment for team contributions.

Effective storytelling is a critical tool for maintaining team focus on customer-centric goals.

Changing the mindset of a team can significantly enhance their performance and output.

Encouraging teams to regularly communicate their insights leads to a more responsive product development process.

Leaders should continuously learn from customer interactions and adapt their strategies accordingly.

Transcripts

[Music]

[Applause]

so

i'm in a unique position i get to talk

with and observe

lots of teams making mobile apps

websites and other digital tools

most of these digital initiatives will

fail

seventy percent according to mckenzie

hundreds of billions of dollars

will be lost lost on products customers

don't want to buy

lost on products that don't even make it

to the customer

lost on services that just don't work

people call me because they're

struggling my job

is to help them figure out what their

customer needs and how to get it to

market

i work with a lot of ordinary cheap

product officers

ordinary chief technology officers

ordinary product leaders

and every once in a while i get to meet

a product leader

who is exceptional these exceptional

product leaders

they're growing their revenue and their

customer base

they're getting all the attention you

want all the talent you want

i've seen what makes them exceptional

and i want you to know what it is

you may think it's their great ideas

that make them exceptional

and they do have great ideas they also

have mediocre ones

and bad ones too somehow we got this

notion that the idea was the important

thing

to go from an idea to an app on your

phone takes a team

of people with different skill sets

making lots of decisions

on what to build and how to build it so

it's not their ideas

that make them exceptional you may think

execution their ability to get stuff

done

now see you can get a lot of stuff done

and doesn't mean that

anybody wants to buy it so it's not

their execution

that makes them exceptional i've seen

what makes them exceptional

because all of them do the same thing

and they do it in more or less the same

way

they teach their teams how to think how

to listen

and solve customer problems now i feel

kind of dumb standing up here and saying

this listen and solve customer problems

because i'm probably not the first

person to do it

but here's the thing i sit in your

meetings

i watch your teams make decisions then i

go talk to your customers

you may say the words customer focus

customer

obsessed you may put lots of sticky

notes up on the wall

but your teams don't know who your

customer is and they don't know what

they need

how do i know well when i ask you who

your customer is and let's say we're

talking about a business-to-consumer b2c

product you tell me

it's for a soccer mom all the soccer

moms out there

except that doesn't really help me

understand her

i mean are we talking about a soccer mom

with two kids a job and a nanny maybe

she has a very different life

from one who's got an aging parent

autistic child who has to do multiple

pickups and drop-offs who has to

co-parent who has to

maybe take public transportation because

she doesn't own a minivan

that her kids play soccer is the least

interesting valuable viable data point

about her

now if we know that she's struggling

with finances

nutrition how to work from home full

time while also taking care of her small

children

full time which by the way sucks

if we understand that about her then we

can do something about it

now in the b to b world business to

business we hear a lot about

titles like heads of marketing except

you know heads of marketing can be

really different depending on

the size of the company the revenue the

business model the industry

but some of them are dealing with ad

fraud they're being scammed by

fraudulent clicks

they don't know where they're coming

from they don't know how to stop them

they don't know what tool to integrate

with all their other tools but if we

know

what their challenge is then we can do

something about it see years ago

demographics might have been enough to

help us understand their customers

and that might have worked because they

didn't have very many choices so they

settled

they settled for us but now we have lots

of choices and new things are coming out

in the market

every day which means you need to be

deeply

objectively clear about who your

customer is and what they need

you need to get out of the building do

the research look at the data find the

patterns that aren't biased

to help you understand what they need

and it's not enough that you as a leader

understand and need just tell your teams

what to do

because you're not the one doing the

work see we've got the customer

the customer uses the product the team

uses works on that product every day

making lots of decisions about how to

prioritize things or what they should

look like

then we've got the product leader and

way over here

is the ceo see top-down decision-making

just doesn't work they're too far away

from the customer to understand them

it takes too much time to go from the

ceo to the team

that means they're not responsive

they're not

adapting they're not thinking in order

to go

from the ordinary to the exceptional we

need to change the way teams think

an ordinary team will think about

following the development process

getting the work done on time

meeting the specification if that's what

they they're thinking about

that's what they're focused on that's

what they're going to do

it's what we taught them to do a team

with an exceptional product leader we'll

be thinking about

what is the customer need how can we

help them

how by helping our customer can we help

our business grow

how a team thinks matters so let me show

you an example

so this is a manufacturer and they make

the market leading

products for decking railing stairs and

other outdoor items

the amount that they know about

substructures and stairs will blow your

mind

and that's why they're the top choice

for contractors but they wanted to get

in the market

for the do-it-yourself diy builder

so they hired a team to build a digital

designer tool for them

but the team didn't know anything

about how to build anything that wasn't

software

they didn't know what kind of person

does it themselves instead of hiring a

contractor

they didn't know what kind of support

that diy builder

would need to guide them through all the

complex and expensive decisions about

what needed to be in their design

and their project what this team knew

how to do

was to learn really fast so they spent

hours and hours with experts building

scale models of decks

they spent lots of time talking about

railings i kid you not

hours and hours and hours on railings

they went out and they talked to diy

builders

they did prototypes and they showed them

they made sure that every decision they

were making on this project

was to help that diy er have the

confidence to take the project on

have the guidance that they needed to do

it well

and by helping that customer they were

going to help this

company grow in the diy market

see the way you think your mindset

it matters it shapes and guides and

frames the decisions we make

every day the small ones and the large

ones

the research of carol dweck and others

has taught us that it's not only

possible to change someone's mindset to

change a team's mindset an entire

company's mindset you can change their

performance

exceptional product leaders change the

way their teams think

to focus them on solving problems of the

customer and helping the business grow

here's how i know i'm in the presence of

an exceptional product leader

within the first the first five minutes

of talking to them about what they do

they're going to tell me their customer

story

they always do see exceptional product

leaders

tell their customer story to every

prospective new employee to every

stakeholder

to every investor and to their team

every time that team is about to make a

major decision

they've done the work to have the

clarity and the details about who their

customer is and what we are trying to

accomplish as a team

and they need to say it over and over

again to make sure their team

understands it if i meet you

within the first five minutes you don't

tell me

your customer story i start to wonder

is that because storytelling is hard

because i can definitely tell you

that it's complicated and takes some

practice

or is it because you've gotten so busy

in the day-to-day work of trying to make

things happen

that you started to forget who the

customer is that it's been a while since

you talked to one

that you started to lose focus on the

big goals and objectives we're trying to

accomplish with our company

and if the story is started to get fuzzy

for you

if you're not quite so sure

what does that mean for your team

what goes in one of these exceptional

stories matters

so let me tell you one about the common

application

if you or anyone in your family has

applied to college in the last let's say

20 years

they probably use the common application

every year millions of high school

seniors go online

they choose the colleges and

universities they want to apply to

they enter their essays their data they

get letters of recommendation

and then they send it off hoping to get

into colleges of their choice

the mission of the common application is

access

equity and integrity in the college

admissions process

so when they started to figure out what

do we do in mobile

they were really thinking about their

students in particular

students like this one no one in her

family

has ever been to college she wants to be

the first

she doesn't have fancy coaches she

doesn't have a well-equipped college

counselor at her school

she's got to keep up with her schoolwork

extracurricular activities that will

look good on the application

and a job and maybe family commitments

too she's got to do

all of that while handling a complicated

process of lots of different

essays and recommendations and data

points she needs to collect

and submit on time

don't you see what she's up against

don't you want to help

because that's what this team did and it

guided every decision that they made

about what to build when

and how to build it see what goes in one

of these exceptional stories has a

couple of key hallmarks

and i want you to know what they are the

first

is that an exceptional product leader

creates a detailed picture of the

customer

among a sea of people i know which one

is their customer

they've created a picture that's clear

they helped us understand

what they're trying to do what they're

up against and what they

could achieve if things were just a

little bit easier

next they talk about how the market has

continually

failed to serve this customer how they

don't understand their needs

they don't see the opportunity they're

not able to

adapt or innovate which means the market

is open for an organization or a company

like ours

to come in and do something special

lastly they tell the team how the

product is going to help

they paint a picture of the future where

the customer is thriving and achieving

their goals

where a company is serving the market

and it's growing and healthy

we're contributing to our community they

paint this picture in such a way

that the team is willing to commit to

the work knowing full well

that it's going to be complicated and

it's going to be hard

and absolutely nothing is guaranteed

now i met a lot of exceptional product

leaders are really ordinary product

leaders who can do these three

but the truly truly special can do one

more

and for most of us it's kind of scary

they tell their team that they don't

have all the answers

most of us want to be seen at the

leaders who have the brilliant ideas the

great strategies

who always have an answer when the team

comes to us

it's a lot harder to say that you don't

know to say things like

i know about our customer but not

everything go find out

i know the opportunity is there but not

exactly how to take advantage of it

let's go figure that out i know that

things will change

i know that we will get things wrong and

when we do

we'll figure it out together see what

makes them truly magical and exceptional

is that they both can paint a compelling

vision of the future

that we all want to get to but yet they

leave plenty

of space for their team to fill with

their ideas

their contribution their experience and

what they learn from interacting with

customers

it's these two things together that make

them so exceptional

except it's not magic

this is something that you can learn to

do

too having a high performing team

making a successful product is possible

you can figure out how to do this

you can learn to do this and it will

suck at first

but you'll get better along the way and

i promise you

that it's worth it here's your first

step

start telling your story if you don't

know who your customer is

go look if you can't understand the

market opportunity and uniquely identify

what is available

go find out create a compelling vision

for your team and

welcome them to contribute their ideas

make it safe enough for them to tell you

when you're being a dumbass

tell your story to everyone you meet

tell it all the time it will suck at

first

but it will get better the picture will

become clear

the team will be more effective you'll

lead your team to something

exceptional go make something great

together

[Applause]

[Music]